The Bright Future of Mobile Payments

For retailers, mobile pay apps offer a valuable way to connect with consumers and build their business. 

October 22, 2019

Phillips-66-Logo_Web_200x200.jpgThis article is brought to you by Phillips 66.

HOUSTON—More than 81% of Americans have a smartphone, up sharply from 35% in 2011, according to the Pew Research Center. These smartphone users expect the convenience of a seamless mobile experience, since their phones are integrated in nearly all aspects of their lives, including using mobile payment to make purchases. Within three years, the estimated transaction value of mobile payment apps will come close to $14 trillion, according to Payment Cards & Mobile.

Gas station mobile payment apps do more than just satisfy consumer expectations for speed and convenience. They also provide access to consumer behavior and purchasing data, which retailers can use to entice pay-at-the-pump consumers into the store with targeted in-app perks.

“Mobile payments give retailers a new way to interact with consumers and drive traffic by offering personalized incentives and rewarding loyalty,” said Jim Macari, director of emerging payments and loyalty, Phillips 66. “Fuel and convenience retailers have an opportunity for cross-promotion as mobile payments work both at the pump and inside the stores.”

For retailers, mobile pay apps allow users to transact without the use of a physical credit card. By using mobile payment technology, users avoid the risk of swiping a credit card in a hidden skimmer device. This benefit creates an added layer of payment security for consumers and retailers.

Experts agree that the potential for convenience store mobile payments will continue to accelerate—and retailers should be ready to meet the increasing demand for this payment option. “For convenience stores, mobile payments offer a way to differentiate among the competition by offering a faster checkout and safer means of paying both at the pump and inside the store,” Macari said. “Mobile payments allow brands to stay relevant and evolve with consumers.”

This is the first installment of a two-part series about how retailers can capitalize on the benefits of mobile payments. Look for more on this topic in the Oct. 24 edition of NACS Daily, and read more about Phillips 66 and mobile payments in “Great Expectations,” from the August 2019 NACS Magazine.

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